Flexible Spending Accounts

A flexible spending account (FSA) lets you set aside money to help pay for health and dependent care expenses. You don’t pay taxes on the money you contribute, which saves you money. You must sign up each year, including

Health Care FSA — Use it for eligible health care expenses like medical, pharmacy, dental and vision services and supplies.

Dependent Care FSA — Use it for eligible dependent care expenses like day care, elder care services and programs.

2018 Contribution limits

FSA

Minimum

Maximum

Healthcare

$240

$2,600

Dependent Care

No Minimum

$5,000

The IRS rules allows employees to carry over up to $500 of unused FSA Medical balances. You must elect an FSA for the following year in order to carry over a balance. Balances of over $500 must be used in the same plan year, or forfeited if unused. Dependent FSA balances are not eligible for roll overs.

Under the Health Care Reimbursement Account, you can set aside pre-tax money from your salary to pay for unreimbursed medical, dental and vision expenses, up to a maximum of $2,600. The money is taken out of each paycheck before federal and Social Security taxes are taken out. The money is then placed into your FSA. You can use this money to pay co-pays, deductibles, coinsurance, prescription costs and other eligible medical expenses listed by the Internal Revenue Service. A list of eligible expenses can be found on SAWS EZLink.

Health Care FSA

Having UnitedHealthcare administer the Flexible Spending Account results in process enhancements. Since UHC is also the medical, dental and vision third-party administrator or provider, they already have information regarding your claims. Therefore, the receipt confirmation requirements for reimbursement will be minimized.

Dependent Care FSA

If you agree to set aside money on your dependent FSA, you can use this money to be reimbursed for eligible dependent day care expenses. Covered dependents include children under 13, a disabled spouse, or a disabled dependent. Dependent care FSA money is also taken out of each paycheck before taxes. However, you may not be reimbursed for a dependent care expense until your FSA account has accumulated the total amount you are requesting from your paycheck deductions.

If you wish to participate in the Flexible Spending Account, you must also make this election online for the 2018 plan year, even if you already have an account this year. If you’ll have an unused health care FSA balance this year, you must enroll in an account for next year in order for the balance to roll over to 2018. To view account activity, balances, and submit a claim form, go to myuhc.com.